Different Kinds of Mortgage Fraud

Life can be extra tricky when it comes to activities involving money, business, and all other transactions. There are so many things to be aware of and things you should look out for you to get through the long process successfully. One of which is fraud.

 

Did you know there are different kinds of fraud? In this article, we will be talking about five kinds.  These are namely online scams, fraud for shelter,rent-to-own scans, fraud for profit, and suspicious brokers. Read on to get an overview of each kind!

 

Online Swindle

Shady activities online don’t only mean spamming emails but you should know that a “good” swindle could be just a few clicks away. When looking for properties or private sales, you can tell if it’s a possible fraud if the seller you’re in contact with asks for money before you meet in person or before they show you the property. Another online scam is when a swindler steal listings, information, and photos to place it on another website.

 

Fraud for Shelter

This is also known as “soft fraud” and it means that a person intentionally gives the wrong information to the lender so they could get a mortgage that they might not be qualified to be granted. There are different tactics including altering appraisals or forging employment/income verification documents.

 

Rent-To-Own Scam

As you may know, the idea of rent-to-own is paying rent of the home which will eventually be yours in the future like the Cebu Condo. It’s perfect for people who are trying to rebuild their credit before buying a house or saving money for a down payment while renting. If you’re not fully aware and guided, you might end up losing a huge amount of money and losing the chance to get that house. One thing that gives away this kind of scam is when the company or the landlord will not sign any papers and excluding a lawyer in the process.

 

Fraud for Profit

This involves someone who either forges documents or impersonates the homeowner for money. Fraudsters usually register the forged documents and transfers the property into his/her name. When they appear to be the real owner of the property, that’s how they acquire a new mortgage against the property and then make off with the cash.

 

Suspicious Brokers

In business, we’re always doubting and so we just do not know who to trust in this process.  Financial advisers, mortgage brokers, lenders, and agents are supposed to be the people who we could lean on all throughout. However, if they’re the bad guy here and you remain unaware, you’re going to be in a tough situation. One way to avoid this is to always make sure that your broker is licensed. Anyone who acts as if they’re a licensed broker or agent could be prosecuted for a violation of the law. That’s why virtual house tours are being built for preview before meeting the brokers.

 

Money is a tricky thing to deal with and it’s a powerful manipulator that makes people do crazy and unethical things. Always think ahead and have a plan B ready on standby because in real estate and in any other business, you never really know what could happen. Research, read, background check — it pays to be aware and cautious!